Housing Bank for Trade and Finance (HBTF) Group announced the results of its consolidated financial statements for the fiscal year ended on December 31, 2023. The results revealed that the Group’s net profits, after provisions and taxes, amounted to JD140.8 million for the year 2023, compared to JD132.4 million achieved in 2022, reflecting a growth of 6.3%. This profit is considered the highest achieved in the Bank history.
H.E. Abdel Elah Al-Khatib, Chairman of the Board of Directors, expressed his satisfaction with the financial results for 2023. These results demonstrate that the Group has continued to achieve sustainable growth in profits, aligning with the Group's comprehensive and flexible strategic approach. This approach is rooted in the Bank’s focus on sustainability and digital transformation, which are in line with the evolving requirements and needs of the Bank’s clients.
Al-Khatib explained that these results were achieved due to the combined capabilities and strengths represented by sustainable investment resources, efficient operational processes, effective utilization and direction of available resources within the various operational sectors, and the high quality of the credit portfolios.
Al-Khatib assured that despite the local and external challenges, as well as the international and regional repercussions, the Group has successfully maintained a strong and solid financial position. In addition, the Israeli aggression on Gaza has had a detrimental impact on vital economic sectors like services, tourism, and transportation.
In light of the results achieved for the year 2023, the Board of Directors in its meeting held on 25/1/2024 approved the financial results of the year 2023, and recommended to the General Assembly a cash dividend of 25% of the share nominal value for the year 2023. The Financial results for the year 2023 and the dividend distribution proposal are subject to the approval of the Central Bank of Jordan.
From his side, Ammar Al-Safadi, the Chief Executive Officer of HBTF Group, confirmed that the Group's growth encompassed various financial indicators. These rates reflect the efficiency in managing assets and liabilities, with the support of all operational sectors.
Al-Safadi indicated that the Bank was able during the year 2023 to achieve sustainable growth on the return on assets and shareholders’ equity to reach 1.64% and 10.9% respectively by the end of 2023, which reflect the well managed assets and liabilities and the Bank strong financial position.
Al-Safadi stated that the total income from core banking operations increased by 15.9%, reaching JD438.0 million, compared to the JD378.0 million reported in 2022. Meanwhile, operating profits rose by 18.9% over the previous year, reaching a total of JD253.1 million. These results were achieved as a result of the Group's continuous efforts to increase total income, diversify income sources, and enhance operational efficiency.
Al-Safadi indicated that in 2023, the Group booked over JOD35 million as expected credit losses. This allocation was made in line with its conservative policy against any potential challenges or circumstances. This will enhance the coverage ratio of non-performing loans as well as the coverage ratio of performing loans classified under stage 2.
Al-Safadi stated that the Group was able to increase its net credit facilities at the end of 2023 by 4.8% to reach JD4.5 billion, as well as increasing customer deposits by 6.2% to reach JD5.7 billion. In addition, the Bank maintained its strong capital base, as the total equity amounted to JD1.3 billion, while the capital adequacy ratio reached 18.8% at the end of 2023, which is well above the minimum regulatory requirements of the Central Bank of Jordan and the Basel Committee.
Al-Safadi continued to state that the Bank continuously strengthens its client base by enhancing competitiveness through various projects, including digital initiatives and technical infrastructure improvements. These projects aim to provide a broader range of products and services that align with client requirements and lifestyles. The Bank has also focused on improving the efficiency and enriching the functionality of these channels.
In parallel with these efforts and results, the Group has strengthened its business and community activities. It has implemented various corporate social responsibility initiatives and programs covering multiple sectors aligned with national priorities.
Al-Safadi concluded by affirming his confidence in the Bank's ability to continue achieving further growth and improvements in the future and to provide the latest electronic and digital applications which are on par with the best global banking practices.
